Here's Why I'm Not Buying Walmart Stock
The Motley Fool
by newsfeedback@fool.com (Daniel Sparks)February 20, 2026
AI-Generated Deep Dive Summary
Walmart recently reported strong financial results, including a 5.6% revenue increase and a 12.7% rise in adjusted earnings per share, both exceeding analyst expectations. Despite these positive figures, the decision not to invest in Walmart stock centers on its valuation relative to competitors like Amazon. While Walmart offers a lower price-to-earnings ratio compared to Amazon, the article argues that investors should prioritize growth potential over static valuations.
Walmart's performance highlights its ability to maintain steady growth, particularly in areas such as e-commerce and grocery sales. However, when comparing Walmart's 5.6% revenue growth rate to Amazon's reported 12.8% growth, the disparity becomes significant. This gap underscores concerns about whether Walmart can sustain higher growth rates necessary to justify its current stock price.
For investors focused on maximizing returns in a competitive market, the choice between Walmart and Amazon hinges on balancing valuation metrics with growth prospects. While Walmart's results are solid, the article suggests that Amazon's faster growth may offer more compelling long-term opportunities. This perspective emphasizes the importance of evaluating both financial performance and future growth potential when making investment decisions.
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Originally published on The Motley Fool on 2/20/2026